TAXPAYERS in Winchester can breathe a small sigh of relief today after finance chiefs in the city voted through the lowest council tax rise in years.

Following a heated three-hour debate Winchester City Council agreed to an overall rise of just 3.3 per cent, bringing the amount payable for a benchmark Band D home from £104.40 to £107.82.

The authority has set itself an income from local taxpayers of just over £12.5m, but finance bosses are still warning that, even with a massive savings drive, the council is still projecting a £500,000 loss for the end of the financial year.

Finance chiefs also warned worse could follow in future years if more money was not found, including the threat of job cuts or reducing the council services. The setting of the city council's tax demand follows Hampshire County Council's decision earlier in the week to set its tax rise at 3.5 per cent, bringing the county's demand for the same Band D home to £869.40 - up from £840.15 last year.

Once the fire service and police demands are added in, it will mean residents of a Band D property in the Winchester area will see their bill climb from £1,150.96 to £1,189.84 - an overall increase of 3.4 per cent.

While the rise in council tax demands is less than in recent years, other forms of taxation will be on the up.

Motorists for example will see the cost of parking in the city centre jump by 10p per hour in city car parks, while residents parking permits will soar by up to 100 per cent of their current price.

BREAKDOWN:

Band A: £793.23

Band B: £925.43

Band C: £1.057.88

Band D: £1,189.84

Band E: £1,454.25

Band F: £1,718.66

Band G: £1,983.07

Band H: £2,379.68